Form 4: ONEOK Executive Scott D. Schingen Reports Acquisition of One Share of Common Stock

Scott D. Schingen, a Senior Vice President at ONEOK, reported acquiring one share of common stock through the company's Employee Stock Award Program (ESAP).

Summary

• On November 7, 2024, Scott D. Schingen, a Senior Vice President at ONEOK Inc., acquired one share of common stock, par value $0.01, at a price of $104.14.
• This acquisition was made through ONEOK's Employee Stock Award Program (ESAP).
• Following the transaction, Schingen directly owns 56,830.293 shares of ONEOK common stock.
• Schingen also indirectly owns 1,200 shares through an IRA.
• The ESAP program is currently paused as the current allocation has been fully awarded with ONEOK achieving the $103 milestone on Nov. 7, 2024.
• The ESAP will resume upon shareholder approval of additional shares at the 2025 annual shareholder meeting, which typically takes place in May.

Sentiment

Score: 6

Explanation: The sentiment is neutral. The transaction is a routine acquisition of a small number of shares through an employee program. The pause in the ESAP program is a minor negative, but the expectation is that it will resume.

Positives

• The acquisition of shares through the ESAP indicates ONEOK's achievement of a milestone ($103) and rewards employees.
• The ESAP program demonstrates ONEOK's commitment to employee ownership.

Negatives

• The ESAP program is currently paused, which may temporarily affect employee morale or compensation expectations.

Risks

• Shareholder approval for additional ESAP shares is required for the program to resume, and there is a risk that approval may be delayed or not granted.
• The pause in the ESAP program could potentially impact employee retention or attraction.

Future Outlook

The ESAP program is expected to resume upon shareholder approval of additional shares at the 2025 annual shareholder meeting.

Industry Context

Insider transactions are closely monitored as they can provide insights into management's perspective on the company's prospects. The purchase of a single share through an employee program is less indicative of a major sentiment shift than open market purchases.

Comparison to Industry Standards

• Employee stock award programs are common in publicly traded companies, particularly in the energy sector, to align employee interests with shareholder value.
• The size and structure of ESAP programs vary widely among companies, depending on factors such as company size, profitability, and compensation philosophy.
• Comparing ONEOK's ESAP program to those of its peers (e.g., Kinder Morgan, Enterprise Products Partners) would require detailed information on the number of shares awarded, eligibility criteria, and vesting schedules.

Stakeholder Impact

• The ESAP program impacts employees by providing them with company stock as part of their compensation.
• Shareholders are indirectly impacted by the ESAP program, as it aligns employee interests with shareholder value.

Next Steps

• ONEOK will seek shareholder approval for additional ESAP shares at the 2025 annual shareholder meeting.
• The company will communicate the official date of the 2025 annual shareholder meeting in the future.

Key Dates